A study found that, among addicted smokers, a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded. For these consumers, cigarettes have a

10% increase in Cigarette price with a 2% decrease in quantity demanded:

This implies that "for the addicted smokers, cigarettes have a" demand that is inelastic. The demand curve is said to be inelastic.

Explanation:

If the demand for an item changes proportionately less than the price changes, then the item is said to be price inelastic.  This means that an increase in price does not change the demand for the product in equal proportion to the price increase.  In our example, the demand curve for cigarettes is inelastic since a price increase of 10 percent only decreases the quantity demanded by 2 percent.

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